The government of Sri Lanka plans to renegotiate the power purchase agreement (PPA) with India’s Adani Green Energy for a 484MW wind power project, to reduce the cost to below $0.06 per unit, according to the Press Trust of India (PTI).
The previous government had signed a 20-year PPA for the project at 8.2 US cents per unit, a decision that was contested as local bidders had proposed lower prices.
Sri Lankan government spokesman Nalinda Jayathissa was quoted by PTI saying, “We would want it to be below 6 cents US.”
In December 2024, the new government decided not to proceed with the agreement at the purchase prices set by the previous government in 2023, as reported by Business Northeast. However, the government denied reports that the Adani Green Energy projects in the northeastern regions of Mannar and Pooneryn would be cancelled.
A government-appointed committee reviewed the project, while Adani Green Energy denied the cancellation claims. The Adani Group stated that “the Sri Lankan Cabinet’s decision of 2 January 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies.”
In June 2024, Adani Green Energy announced plans to invest more than $1bn in wind energy projects in Sri Lanka, marking the country’s largest foreign direct investment and one of its most significant power projects. The investment was intended to establish two wind farms with a combined capacity of 484MW.
Source: Power Technology